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Regulators on Wednesday approved a 17.1 percent increase for Southwest Gas Corp. in Southern Nevada with no comment, but the rate change and similar utility rate increases are causing increasing worry among senior citizens on fixed incomes, some say.

Thelma Clark, chairwoman of the Nevada Silver Haired Legislative Forum, believes the Nevada state Welfare Division has done too little to educate senior citizens and others about a program that helps the poor pay energy bills.

Many retirees are trying to make ends meet on fixed incomes while the cost of food, insurance, utility rates, prescription drugs and other products and services increase.

"We're between a rock and a hard place," Clark said.

For the typical residential customer, the monthly Southwest Gas bill will go to $63.87 during winter, when many use gas for space heating, from $55.04, as a result of the Public Utilities Commission decision Wednesday.

In the summer, the typical residential customer in Southern Nevada will pay $25.77 a month, up from $22.97. The rate change takes effect Tuesday.

These increases are designed to compensate Southwest Gas for the expense of buying gas for resale to retail customers. In addition, the gas-distribution company is seeking a 6.2 percent general rate increase for nonfuel costs, investments and profits.

If the Public Utilities Commission approves that rate increase as filed, it will boost the typical winter bill to $67.81 starting in September, according to Southwest Gas.

In the rate case decision Wednesday, the PUC concluded that Southwest Gas was prudent in its purchases of natural gas and, therefore, determined it was entitled to recover these expenses.

Clark, however, complained about the effect these rate increases are having on low-income senior citizens.

Social Security increases, which were 1.5 percent last year, don't keep pace with inflation, she said.

"If we have any savings, the interest is down, not up," she added.

Like Southwest Gas, Nevada Power Co. buys gas on the wholesale market, and high gas prices affect its rates.

"As the price of natural gas continues to rise, there will be an impact, because, as you know, the majority of our power plants are fueled by natural gas," said Sonya Headen, a spokeswoman for Nevada Power.

Rebecca Wagner, a spokeswoman for the PUC, said: "People who are having trouble paying their bills should look to mechanisms like the Energy Assistance Program."

In addition to this state program, the utilities also offer financial assistance for helping low-income people.

Under the state program, customers of Nevada Power and Southwest Gas earning less than 150 percent of federally determined poverty levels are entitled to assistance usually totaling $500 a year, said Linda Mercer, manager for the Low-Income Home Energy Assistance Program.

That translates into a monthly gross income of $2,356 for a family of four in Las Vegas, starting July 1, or $2,300 currently, she said.

Many retirees qualify for financial aid, but don't know about it, Clark said.

Robyn Clayton, a Southwest Gas representative on the Universal Energy Charge Outreach Committee that advises the Welfare Division, said: "I don't disagree with her,"

However, Clayton noted, the state is preparing a public education program.

Clark blamed the Nevada state Welfare Division, which administers the program, for failing to inform customers about available help.

Mercer estimates that 160,000 households in Nevada qualify for the state financial aid program for utility bills. Yet, only about 16,500 received the benefit last year, she said.

"Only about 10 percent are applying," she said. "We certainly have enough funds to support at least 50 percent more."

Mercer estimated that the Welfare Division gets about $8 million yearly through the universal energy charge to help low-income people pay power and gas bills but is only giving half of that amount to qualified low-income households.

Another $3.2 million annual grant from the federal grant is available for helping low-income residents pay utility bills as well, she said.

"We have not been able to reach the population in this state successfully to let them know that we have this program and that we have all this money," Mercer said.

To help resolve the awareness problem, the state entered a $150,000, one-year contract with Vitalink, a marketing firm from Raleigh, N.C. The marketing firm is expected to start a broadcast and print advertising campaign, public-service announcement program and related efforts in Southern Nevada next week.

A change in program guidelines will provide a new benefit starting July 1 when the state's new budget year starts. Qualified applicants may get all of the past-due bills paid by the state program in addition to the continuing financial assistance, Mercer said.

NORTHERN NEVADA POWER RATE BOOST OK'D

The Public Utilities Commission split 2-1 on Wednesday with Chairman Don Soderberg dissenting in a decision to disallow some of the expenses that Sierra Pacific Power Co. of Reno incurred with an experimental coal gasification plant.

Sierra Pacific sought a $95 million annual rate increase, but the PUC approved only $46.7 million or about 5 percent.

Parties to the rate case agreed to $39.9 million for the utilities annual revenue requirement, starting June 1, but cost overruns with the experimental Pinon coal gasification project were left the commission to decide.

Commissioner Carl Linvill favored allowing only $11 million for the gasifier and related technology to be collected over ten years. He proposed disallowing $42 million, because the company failed to amend its resource plan in 1996 because of cost overruns. Commissioner Adriana Escobar Chanos agreed with Linvill.

Soderberg argued that the entire amount should be put in rates, because the PUC's predecessor, the Public Service Commission, approved Pinon as part of the utility's resource plan in 1993.

Consumer advocate Tim Hay said he would have preferred a bigger disallowance but called the decision "very reasonable."

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